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A golden parachute is an employment contract between a corporation and one of its top executives that provides the executive with a large sum in compensation in the event that he or she is dismissed as a result of a change in ownership of the corporation. Like most executive level severance agreements, a golden parachute is intended to provide the manager with a source of income while he or she searches for a new job. The benefits often include a generous salary and bonus payment, in addition to vested status in retirement and stock plans. Many corporations believe that offering such contracts enables them to attract and...